December 11 market commentary and technical levels

About Setyo Wibowo:

Living in East Java, Indonesia and holding International Relations degree, Setyo Wibowo began his forex trading career by joining Fortune Channel Investment in 2000 as a market analyst, while learning to trade forex independently on his own. Driven by his desire to share his trading experiences and ideas, Setyo joined the FX Instructor team in 2008. Setyo Wibowo is now living in Mojokerto, East Java, Indonesia.

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Thu, 11th of December, 2008
By Setyo Wibowo (analyst@fxinstructor.com)

EURUSD Outlook
Yesterday we have a good example of how a combination of a bullish channel and Hammer candlestick formation can be very powerful. The EURUSD made another bullish momentum, topped at 1.3069 and closed at 1.3021. The bias remains to the upside in nearest term targeting 1.3217 and 1.3288 area. CCI in overbought area on daily chart so watch out for a minor downside pressures testing 1.3000 - 1.2970 and 1.2905 support levels. Initial resistance at 1.3125.

EURUSD Daily Supports and Resistances:

• S1= 1.2926
• S2= 1.2831
• S3= 1.2760
• R1= 1.3092
• R2= 1.3163
• R3= 1.3258

GBPUSD Outlook
The GBPUSD didn’t make a significant movement yesterday. After a triangle formation, the pair continued to move in rectangle pattern, which is another consolidation pattern. The pair trapped between 1.4878 and 1.4734 area. A break out from the rectangle pattern could give us a clearer direction. I am expecting more upside pressures towards 1.5050 area as we still have a potential bullish reversal warning from the longer term view as I mentioned yesterday. CCI in neutral area on all three time frames (hourly, 4h, daily).

GBPUSD Daily Supports and Resistances:

• S1= 1.4728
• S2= 1.4659
• S3= 1.4584
• R1= 1.4872
• R2= 1.4947
• R3= 1.5016

USDJPY Outlook
As I had expected, the USDJPY had some upside pressures yesterday. The pair topped at 93.02 and closed at 92.77. The bearish channel was violated to the upside. However the bullish momentum seem very limited now as the pair was traded lower early today in Asian session around 92.37 at the time I wrote this comment. The bias is to the downside in nearest term, but neutral in longer term. Immediate support is seen at 91.93. Initial resistance at 93.02 (yesterday’s high). CCI heading down towards -100 line on 4h chart suggesting a potential downside pressures.

USDJPY Daily Supports and Resistances:

• S1= 92.29
• S2= 91.81
• S3= 91.45
• R1= 93.13
• R2= 93.49
• R3= 93.97

USDCHF Outlook
Again, candlestick formations is proofed to be a very powerful tool in technical analysis. Combined with overbought and heading down CCI on weekly chart, they has lead us to the right bearish direction. The USDCHF had a bearish momentum yesterday. The pair bottomed at 1.1925 and closed at 1.1975. The bias remains to the downside in nearest term targeting 1.1880 then 1.1717 area. However CCI in oversold area and heading up on 4h chart suggesting a potential upside pressures testing 1.2000 and 1.2080 resistance area.

USDCHF Daily Supports and Resistances:

• S1= 1.1906
• S2= 1.1837
• S3= 1.1749
• R1= 1.2063
• R2= 1.2151
• R3= 1.2220

Have a great day!